In its position paperTriodos Bank on reporting on sustainability, Triodos Bank writes that the revised NFRD presents the perfect opportunity to reconsider the public information provided by companies, needed to enable banks and investors to make well-informed financial decisions to promote sustainability.
At the moment, banks and investors do not have all the relevant information to make these decisions. This has to do with the two different reporting frameworks for companies, the Accounting Directive and the NFRD. These have different scopes of application and different degrees of enforceability. The re-allocation of money towards sustainable causes is hampered by these incomplete and non-mandatory reporting requirements for companies.
Therefore, Triodos Bank encourages the European institutions to seize this opportunity of the revision of the NFRD to create one consistent reporting framework, including financial and sustainability information. Such a framework, with the same scope; same degrees of enforceability; proportional to firms’ sizes; serving decisions better with materiality-concepts; and combining financial with impact information, would enable banks and investors to make well-informed decisions and steer their money towards sustainable ventures.